At the same time, it was also announced that the Asset Purchase Programme was maintained at £200bn.
Whilst CPI hit a 17 month high in May at 3.7 per cent, the Bank still expects to hit its medium term target of 2 per cent. Furthermore, economists expect Base Rate to remain static for the remainder of 2010.
Now peoples attention will shift to June 22 and the new governments emergency budget. There, George Osborne will deliver how he intends to cut in to the country’s deficit and the full extent of spending cuts or tax increases.